The Efficient Quantity of a Public Good Is the Quantity

question 59

Multiple Choice

The efficient quantity of a public good is the quantity at which marginal benefit is

• A) greater than marginal cost by any amount.
• B) less than marginal cost.
• C) equal to marginal cost.
• D) zero.
• E) greater than marginal cost by the maximum amount.

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Definitions:

Information Aggregation

The process of collecting, compiling, and summarizing data from multiple sources to form a coherent set of information.

Craigslist

An online platform that provides classified advertisements for a wide range of services, products, and job listings.

Overstock Quantity

Excess inventory that exceeds the demand, often resulting in decreased cash flow, increased storage costs, and potential waste.

Optimal Quantity

Optimal quantity is the most efficient amount of goods or resources needed to minimize costs and maximize value or profitability.